Question: Consider a stock with beta equal to 0.88 , a risk-free rate of 1.70%, and a market return of 8.5%. What is the expected return

 Consider a stock with beta equal to 0.88 , a risk-free

Consider a stock with beta equal to 0.88 , a risk-free rate of 1.70%, and a market return of 8.5%. What is the expected return of the stock using CAPM? 5.98% None of the choices 7.68% 9.18%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!